Large Cap Cement Stock Declares 200% Interim Dividend: Do You Own?

Dalmia Bharat is a large-cap cement company with a market cap of Rs 43,000.71 Cr. The company has announced its Q2FY24 financial results and a 200% interim dividend for its eligible shareholders.

The Board of Directors in its meeting held today i.e. Saturday, October 14, 2023 has declared an interim dividend at the rate of Rs. 4/- (200%) per equity share on 18,75,30,361 equity shares of Rs. 2/- each for the financial year 2023-24. The record date, which is set for Wednesday, October 18, 2023, will be considered to determine the shareholders who will be eligible to receive the interim dividend, according to a stock exchange filing.

The company reported a sales volume of 6.2 MnT for the quarter ended September 30, 2023. up by 6.6% YoY from 5.8 MnT recorded in the year-ago quarter. Dalmia Bharat said its consolidated revenue from operations stood at Rs 3,149 Cr in Q2FY24 up by 6.0% YoY from Rs 2,971 Cr in Q2FY23 while revenue from operations reached Rs 6,773 Cr in H1FY24 up by 8% YoY from Rs 6,273 Cr in H1FY23. The company's EBITDA increased 55.2% YoY from Rs 379 Cr in Q2FY23 to Rs 589 Cr in Q2FY24 while its consolidated EBITDA stood at Rs 1,199 Cr during H1FY24 up by 24.2% YoY from Rs 965 Cr in H1FY23.

The company's net profit jumped 161.7% YoY to Rs 123 Cr in the quarter under review compared to Rs 47 Cr in the year-ago quarter while PAT reached Rs 267 Cr in H1FY24 up by 6.0% from Rs 252 Cr recorded in H1FY23.

Mr. Puneet Dalmia, Managing Director & CEO - Dalmia Bharat Limited, said, "We see a multi‐year strong cement demand trend continuing, as India is undergoing a large‐scale metamorphosis. We were one of the first ones to foresee this upcycle and started building our capacity ahead of time. In the last 3.5 years, we have added ~17.2 MnT cement capacity, which is ~65% growth over FY20 capacity. In line with our vision to reach 110 ‐ 130Mnt by 2031, we are continuing to make consistent strides in that direction and capitalize upon the huge opportunity ahead of us."

Mr. Mahendra Singhi, Managing Director and CEO - Dalmia Cement (Bharat) Limited said, "With the reduction in fuel prices, increased usage of Renewable power and improvement in KPIs, we were able to deliver 55% YoY improvement in our EBITDA, which stands at Rs 589 Cr. During first half of the year, we commissioned 5.1 MnT of cement and 0.5 MnT clinker capacity in the East and South region." He further mentioned, "We continue to demonstrate our commitment towards the environment as we have further brought down our carbon footprint to 456 kg CO2 per ton of cement which is one of the lowest in the global cement sector."

The firm began commercial production of clinker at Ariyalur, Tamil Nadu, during Q2FY24, bringing the total clinker capacity to 22.2 MnT. The company also started commercial production of greenfield cement grinding at Sattur, Tamil Nadu, which has a manufacturing capacity of 2.0 MnT.

"The Board of Dalmia Cement (Bharat) Limited, a material wholly owned subsidiary of the Company, has recommended Mr. Puneet Dalmia as CEO & MD of the company with effect from December 8, 2023 with the culmination of Mr. Mahendra Singhi's decade long successful tenure as its MD & CEO. Further, Mr. Mahendra Singhi will continue as a Director and Strategic Advisor to MD & CEO for a smooth transition and harness his experience in the transformational phase of the DCBL's journey," said Dalmia Bharat in a stock exchange filing.

At its meeting on October 14, 2023, the Board of Dalmia Cement (Bharat) Limited, a major wholly owned subsidiary of the company, approved the proposal to increase the cement grinding capacity at Rohtas Cement Works in Bihar by 0.5 MnT at an estimated cost of Rs 91 Cr. The project is anticipated to be wrapped up in FY25.

On Friday, the shares of Dalmia Bharat closed on the BSE at Rs 2293 apiece.